Dagestan is rich in oil, natural gas, coal, and many other minerals.
Because its mountainous terrain impedes travel and communication, Dagestan is unusually ethnically diverse, and still largely tribal. Unlike most other parts of Russia, the population of Dagestan is rapidly growing.
Dagestan has economic cooperation with Iran.
Dagestan continues to be the least urbanized republic in the Caucasus.
Important industries include food processing, power generation, oil drilling, machine building, chemicals, and instrument making. Dagestan's major exports are oil and fuel. Important agricultural products include fish from the Caspian Sea, wine and brandy, and various garden fruits.